Its my opinion that the Federal Reserve has made mistake after mistake and is totally detached from the reality of everyday life of most folks.
I wrote some time ago that I believed there would be no rate hike in October and no rate hike in December.
There was no rate hike in October. The market is so excited and expecting this rate hike in December it is so sad. Its is so built in to the HUGE expectations of market participants. When they do no raise rates; as they will probably start to cool everyone's expectations little by little, carefully maintaining the hopes of all that things are on the mend, an incredibly careful tight wire to walk of verbal dexterity, the market will realise that the game is up. Rates are unlikely to rise in 2016 an election year. But even that is not it. The facts on the ground (normal folks) are suffering and the situation is becoming worse daily. There may have been a time once when central planners looked after all members of the greater economy… doesn't look that way any more. Turn the other away and forget the poor and needy.
Shipping trade down big time and Baltic Dry Index….
http://www.bloomberg.com/news/artic...-than-official-forecasts-show-maersk-ceo-says
When people give up looking for work they are still unemployed but not apparently if you are a US statistic. (participation rate)
http://data.bls.gov/timeseries/LNS11300000
If you look at the longer chart for US LABOUR PARTICIPATION RATE it gives a good long term macro picture of whether the US is getting bigger or smaller over decades. This chart shows the boom post war and we can see the stagnation after the 2000 dot com bubble/2001 Twin Towers market crash and 2008 market crash and stagnation now. We have gone over the hill and are starting a long descent down for years and years to come. This is another reason why we are zero interest rates along with the current money system finally running out of steam. It needs more dollars put in each month to keep it going. Any incremental increases in interest rates are going to kill the economy now. That is why it will take years to get to 2 or 3%, years. It may never happen and if it does will only occur when there is large scale price inflation.
Adjust chart to MAX timeframe to see participation rate from 1950. You'll get what I mean.
http://www.tradingeconomics.com/united-states/labor-force-participation-rate
Likely precious metal moves upwards close to december we get as reality dawns this rate rise is nonsense. And if economic data worsens (which its going to) the bull run will start going again and reconnect to the long term up trend that has been going for decades.
The Fed perception by market is close to capitulation. That will lead to GOLD and Silver going up finally very BIG. Positioning deeper in GOLD and SILVER as we approach this junction in history.
JFI
